When Jack's income increases by $1,000, he spends an additional $850 dollars. This implies that his marginal propensity to save is 0.85
Indicate whether the statement is true or false
FALSE
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. A negligence standard, with the allowance of contributory negligence, always leads to a socially optimal outcome. 2. Strict liability is the liability that exists when it can be proven beyond a reasonable doubt that the defendant was negligent. 3. Negligence is irrelevant when a strict liability standard is applied. 4. The principle of general average gives a ship's captain an incentive to consider the value of cargo when jettisoning it to prevent a disaster. 5. The doctrine of Respondent Superior contends that an employer is sheltered from torts committed against his employees.
The following will not cause correlation between X and u in the simple regression model:
A) simultaneous causality. B) omitted variables. C) irrelevance of the regressor. D) errors in variables.
Suppose Bev's Bags makes two kinds of handbags-large and small. Bev rents an industrial space where she keeps the fabric, the industrial sewing machine, her measuring board and cutting shears, extra needles, thread and buttons, and labels. If Bev were to produce no bags, which of the following is true regarding Bev's costs?
A. The variable cost of fabric would drop to zero. B. The fixed cost of thread would stay the same. C. The variable cost of cutting shears would drop to zero. D. All of these are true.
Which of the following is an example of the bequest motive for saving?
A. Gerry and Terry put $2,000,000 in a trust fund that will go to their children when they die. B. Pat puts $400 per month in his 401(k) retirement account. C. Jordan sets aside $200 per month in case she has to pay for a new roof for her house. D. Chris keeps $15,000 in a money market account to pay expenses in case he loses his job.